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April May Unit dat Beginning inventory Production 500 475 Sale 350 595 Variable costs Manufacturing cost per unit produced 8.500 5 8.500 Operating

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1. Prepare for April and May income statements for Fast Track Motors under (a) variable costing and (b) absorption costing. 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under under variable costing and absorption costing.
Fast Track Motors assembles and sells motor vehicles and uses standard costing Actual data relating to April and May 2014 are as follows
Click the icon to view the data . )
The selling price per vehicle is
Vehicle is $22 000 . The budgeted level of production used to calculate the by
dgeted fixed manufacturing cost per unit is 500 units . There are
no price , efficiency , or spending variances Any production – volume
variance is written off to cost of goods sold in the month
the in which it occurs
Requirements
1 . Prepare April and May 2014 income state
statements for Fast Track Motors under ( a ) variable costing and ( b ) absorption costing
2 . Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing
( b ) Prepare April and May 2014 income statements for FastTrack
rack Motors under absorption costing Complete the top half of the income statement for each
month first , then complete the bottom portion . Enter a to " for
any zero
balance accounts Label any variances as favorable ( F ) or unfavorable ( 1 ) . If an account does not have a variance , do not select a label . )
April 2014
May 2014

 
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Using the SEC 10-K for your company, answer the following questions: 1. Reading the notes to the financial statements, as well as the balance sheet

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Using the SEC 10-K for your company, answer the following questions:

  1. Reading the notes to the financial statements, as well as the balance sheet, post information about the Accounts Receivable for your company. Who owes the company money?
  2. Search for the phrase “Bad Debts” or Allowance (for collectible accounts). When you read the balance sheet, you may see that the receivables are listed as a net of $x,xxx to show the Allowance for Bad Debts. Comment about the changes in Accounts Receivable and the Allowance for Bad Debts. Are they increasing or decreasing? How does this relate to sales (are sales increasing or decreasing)?
  3. Property, Plants, and Equipment / PPE (Capital Assets; Fixed Assets): Comment about PPE and accumulated depreciation. How are these values changing from year to year: PPE, Accumulated Depreciation, and Net PPE?

Here is the 10-K link to the company I am researching:

http://www.sec.gov/Archives/edgar/data/789019/000119312515272806/d918813d10k.htm#tx918813_34

Please provide the responses below.

 
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Job Order Cost Problem (This project is worth 5% of your grade.) Directions: After reading the scenario, complete the task below the scenario

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(This project is worth 5% of your grade.)

Directions:

After reading the scenario, complete the task below the scenario.

Scenario:

Just4U Company uses a job order cost system.  The following data summarize the operations related to production for the month of January 20xx.

a) Materials purchased on account:     $150,000

b) Materials requisitioned and Factory labor used:

JOB ORDER MATERIALS LABOR
601 $32,400 $19,300
602 $21,300 $15,200
603 $28,400 $17,500
604 $26,308 $16,395
605 $31,225 $18,422
General Factory Use $5,300 $32,400

c) Factory overhead costs incurred on account:         $34,500

d) Depreciation of machinery and equipment:           $5,100

e) The factory overhead rate is $50 per machine hour.

Job Order Machine Hours Used
601 320
602 225
603 300
604 285
605 312

f) Jobs completed:       #601, #603, #605

g) Jobs shipped and billed:  #601: $113,200,   #605: $88,350

Task:

Prepare the proper t-accounts and show all balances and DETERMINE GROSS PROFIT.

 
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W Produce Anything, Inc., a small manufacturing company, commenced operations at the beginning of the year. The following income statement for the

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W Produce Anything, Inc., a small manufacturing company, commenced operations at the beginning of the year. The following income statement for the first quarter was prepared by MBA graduate #1.

We Produce Anything, Inc.
Income Statement
For The Quarter Ended March 31
          Sales (46,000 units)                                                                               $2,300,000
          Variable expenses
               Variable cost of goods sold                                      910,800
               Variable selling & administrative                            368,000           1,278,800
          Contribution Margin                                                                             1,021,200
         Fixed expenses
               Fixed manufacturing overhead                               600,000
               Fixed selling & administrative                                 431,200           1,031,200
          Net Operating Loss                                                                               $(10,000)
Management is discouraged about the loss. MBA graduate #2 insists that the company should be using absorption costing instead of variable costing. She (or he) states that, if absorption costing had been used, the company would have reported a profit for the quarter.
For the first quarter, the company is producing only one product. Production and cost data relating to that product for the first quarter is:
     Units produced                                                                                           50,000
     Units sold                                                                                                   46,000
     Variable costs per unit
               Direct materials                                                                               $4.20
               Direct labor                                                                                      14.40
               Variable manufacturing overhead                                                  1.20
               Variable selling & administrative                                                    8.00

Required:
   1a] Compute the unit cost under absorption costing.
     b] Redo the company’s income statement for the quarter using absorption costing.
     c] Reconcile the variable and absorption costing net operating income (loss) figures.
   2] Was the MBA graduate #2 correct in stating that the company really earned a profit for the quarter? Please explain your answer.
   3] During the second quarter of operations, the company again produced 50,000 units but sold 54,000 units. (Assume no change in fixed costs.)
      a) Prepare a contribution format income statement for the second quarter using variable costing.
      b) Prepare an income statement for the second quarter using absorption costing.
      c) Reconcile the variable and absorption costing net operating incomes.

The S Corporation makes two types of skis—Better and Great. The data for the two product lines is:
                                                                                                Better              Great

     Selling price per unit                                                                  210                    150

     Direct materials per unit ($)                                               110                    80
     Direct labor per unit ($)                                                        30                    15
     Direct labor-hours per unit                                                                 2                     1
     Estimated annual production                                            12,500             55,000
The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours.
     Estimated total manufacturing overhead                         $2,000,000
     Estimated total direct labor-hours                                                  80,000DLHs

Required:
   1] Using Exhibit 6-12 as a guide, compute the product margins for the Better and Great products under the company’s traditional costing systems. Assume all units are sold.
   2] The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the other category contains organization-sustaining and idle capacity costs);
Activities and activity measuresEst. Overhead costsExpected activity
                                                                                                  Better   Great   Total
     Supporting direct labor(DLH)            784,000                     25,000  55,000  80,000
     Batch setups (set ups)                        500,000                          400        100        500
     Product sustaining (# of products)    600,000                               1             1            2
     Other                                              116,000                             N/A         N/AN/A
     Total manufacturing overhead         2,000,000
Using Exhibit 6-10 as a guide, compute the product margins for the Better and Great products under the activity-based costing system.








 
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